Office Market Hamburg 2Q2020: “People are arranging viewings again”

As a result of the Corona lockdown office space lettings in Hamburg during the 1st half of 2020 were at their lowest since 2004. Figures analysed by Grossmann & Berger, a member of German Property Partners (GPP), reveal take-up during the 1st half of the year at a mere 165,000 m². However, by June moves to relax the lockdown measures had started to generate a recovery. “People are starting to view properties again. But since the full effects of the Corona pandemic are not as yet known, many potential occupants are worried,” says managing director Andreas Rehberg reviewing the current state of the market.

Office market details Hamburg:  

• In terms of vacant space a new picture is emerging: Starting from an extremely low base, the amount of office space available at relatively short notice is growing. Accordingly, by the end of the quarter the vacancy rate had climbed to 3.3 %, which translates into some 454,000 m². Year on year the range of properties available to new tenants increased by 34,500 m².

• Greater choice means that property owners will face real competition once more. Rents will therefore remain stable at their current levels. Thus, in the months to come, tenants will probably find that they are offered more generous incentive packages than in the recent past.

• Despite this, the average rent in the 1st half year of 2020 was €17.60/m²/month, or 2.9 % higher than in the same quarter of 2019, while the premium rent rose by 8.9 % to a new high of €30.50/m²/month.

Selected agreements | offices in Hamburg | 1st and 2nd quarters of 2020 

New transactions or those occurring in the quarter covered by this report, are highlighted.

The complete market survey will soon be available here.